Stiglitz on Mexico's reaction to crisis

Joseph Eugene Stiglitz (born February 9, 1943) is an American economist and a professor at Columbia University. He has won two Nobel prizes, and he is also the former Senior Vice President and Chief Economistof the World Bank. He is known for his critical view of the management of globalization, free-market economists (whom he calls "free market fundamentalists") and some international institutions like the IMF and the World Bank.

Recently, Stiglitz stated that Mexico's reaction to the global economic crisis has been one of the worst anywhere.

"Statistics showing growth have been very weak and pessimistic" for Mexico, Stiglitz said. "The combination of a very weak recovery in the United States and a fiscal policy that doesn't stimulate the Mexican economy is worrying." Stiglitz spoke to attendees of an event organized by Grupo Mexicana and Grupo Posadas, two major Mexican companies.

El Universal reported that Stiglitz said Mexico's position in the face of this crisis was "unusual."

"In contrast, countries such as Australia, which was the first country in the developed world to emerge from the recession," Stiglitz said, "applied strong measures through a packet of well-defined incentives."

Although Mexico is dependent on the U.S economy, that represents a risk, he warned.

"Many people hope that a recovery in the U.S will be the solution," he said. "But Mexico needs an alternative."

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Not new ...

I don't think this will be completely relevant but it's fine if we start creating conscience in every mexican. After making the "Indice de Percepción de Corrupción en México" by Transparencia Internacional, corruption in our country got worst comparing it with 2008. I think that the majority are tired of this kind of acts that attempt against us and our economy. Specialists said that the cause of this problem are factors as the weakness of institutions and the lack of one politic of state.

The director from Transparencia Mexicana, Eduardo Bohórquez, said that one of the reasons is that in the international perspective crime and drug trafficking, but mainly the lack of transparence. He also said that is disappointing how this problem is in the national agenda but is not taken serious by the nation. Specialists said that this study shows that the State, the legal system and the government are far from representing the society.

It's definitely ridiculous how anyone do something to solve this; how can we explain that Chapo Guzmán or Carlos Slim are more powerful that the proper president or the PGR? The only answer is corruption.

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Mejico hits the news

Again.

Here in Mexico we have the luck of always finding our way into the news; always in a bad context.

Do you remember that six months ago Mexico and "The Swine Flu" were the breaking news. And suddenly everyone talked about how we will and are infecting the world.

And once again We are in the news. About a week ago the Prince of Netherlands came to Mexico to talk about investments in clean energy and the petroleum business. Everything was alright until the end when the Prince said a Mexican proverb to end "Camaron que se duerme se lo lleva la chingada". He was very proud of himself because he said it in a perfect spanish, but everyone stare at their surroundings impress with the sentence. After the incident we knew that one of his workers told him the proverb a little modified because he did not know about coloquial Mexican spanish. Since then we have been in the news but not for the energy deals but for the mexican proverb.

Funny, but true.

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Recession is NOT over

Porfirio Muñoz Ledo, president of the Comisión de Relaciones Exteriores of the Cámara de Diputados who you may know from the congress Dirige Tu Vida, qualified president Calderón's declaration about the end of the recession as nonsense and as a lie. Muñoz Ledo considers that there is no recuperation of the country's economy, as there isn't a project for new investments.

He stated that every piece of data point to the continuation of the slope, and that there is no reason for it to be the other way around because there are no economy growth factors present. He added that a clear sign that recession is not over is that there isn't an increase neither in consumption nor in exportations.

Muñoz Ledo further stated that for the life quality of Mexicans to change, the destitution of president Calderón is required, as he doesn't have the legitimacy or the basic orientation to improve the country's situation. He declared that as the President doesn't have majority in the Congress, he can't govern the country. As if that wasn't enough, he even said that we need to name an interim president to carry out an efficient reformation of the State, as the actual system doesn't work.

Source: "Es mentira que acabó recesión: Muñoz Ledo" Periódico El Imparcial [Hermosillo] 8 Nov 2009. General: 05

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Recession is Over

That is, according to Mexico's president Felipe Calderón. Yesterday, when participating in the inauguration of the Bloomberg Mexico (a financial software, news and data company) Economic Forum, Felipe Calderón stated that Mexican economy has grown 2.7% during the third trimester of the current year, as reported by Secretaría de Hacienda. He said that these are good news, as they impliy the end of the recession (at least in Mexico), and that the government is working hard on making this recuperation to continue and to grow.

He also said that the 2.7% economy growth was accompanied by a 4.6% inflation, and that from this positive tendency the Mexican government is expecting an economic growth of at least 3% in 2010 and of 5% by the end of his administration. Calderón further stated that his government's intention is to transform Mexico into one of the most strong economies in a global level and that moments like this are the best moments to improve the country's economy.

Is this truly the end of the recession in Mexico? What can we expect from this? Do you think we can become a strong economy on a worldwide level, as Calderón thinks we can? I think only time will tell, but it is not only up to the government, it is also up to us.

Source: "Acaba la Recesión, asegura Calderón." Periódico El Imparcial [Hermosillo] 6 Nov 2009. General: 09

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How many Mexican guns come from the US?

As we all know, the vast majority of the weapons used by drug dealers and criminal organizations in our country come from the United States. Prominent politicians like Barack Obama and Hillary Clinton have gone as far as to say that roughly 90% of the guns that have been recovered come from their country. Could those numers be right?

First of all, we should have a good idea of the guns that have been recovered by the Mexican police. However, all attemps to find a solid number have been unsuccessful, since estimated numbers say that less than 20% of the guns recovered have been traced back to the United States, which leaves us to wonder: what in the world happens with the other ones? As one can expect, no official word has been said by the Mexican authorities.

Although it is expectable that the majority of the weapons used in Mexico come from the United States, due to ease with which they can be transported, this brings a lot of things into question. Without a doubt, the most important is what happens with all the weapons that are not traced back to their origin. The least dangerous example would be if the Mexican police kept them, but what if they do not? What if they come back to the criminal organizations, which is plausible, due to the corruption levels in our country?

So, what do you think that happens with that arsenal, is it used for good or not? Feel free to share your opinion...

To keep on reading, please click below...

http://www.newsweek.com/id/194791

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Genetic modified crops in Mexico

Mexico received some protests of Greenpeace because of the decision of the government that is to cultivate genetically modified corn. The environmentalists said that they could affect all the nation’s native crops.
About 45 Greenpeace activists hung protest signs at the Angel of Independence. This was made because is the major traffic city and many people will see it.
The nation agriculture and the environmental department approved two of the 35 applications to grow genetically modified crop.
Genetic modified crops can cause the lack of nutrition or pest and disease. The modification also can increase cold and drought.
Corn is not the only modified crop, also cotton, papayas and soybeans.
Mexico said that the modified crops are and experiment that will be controlled by the government and isolated from other crops. The modified crops will be planted in states that do not grow native corn.
Mexican protesters said that they are worry because of the effects that the modified crops cause to the consumers, other crops and the environment. Also they said that they are scared that the modified corn could damage the native corn. Scientific studies have determined that this modified corn has already contaminated some native corn fields. Some protesters said: “Without corn, there’s no country”.
Greenpeace asked Mexico to stop immediately the use of the transgenic corn because of the effects.

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Solo en México

Yesterday i was walking by the street and i happened to walk into this attrocity.

How is Mexico supposed to advance if they are not able to build a good ramp?

Mexico; the country with a FTA in North America and a Treaty with the European Union should be a country rising to become a world leader, but how is it supposed to rise if they can not even build an accessibility ramp. Mexico should concentrate in its infrastructure because it lacks a lot of important things.

I leave it for your consideration.

P.S. The ramp is like 2 1/2 inches from the ground.

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Health system reformation NEEDED!

I hate having my blogposts one next to the last one but I can wait for this one.

Today I arrived home and they sent me directly to my grandpa's house. Why? My sister has the flu, even tough it is not for sure swine flu they want to prevent. But what made me think was that they told me that they went to the hospital but they told her:

"No te podemos hacer la prueba hasta de dentro 48 horas para estar seguros que presntes sintomas"

Why wait, my sister could be dying and she is not being tkaen care of? My mom had to take her to Secretaría Sanitaria.

This gets me thinking. Mexico really needs a health system reformation, but if people do not complain we will never go any further so me and my grandfathers persuaded her of making a formal complaint. Maybe one person is not the difference but for sure, 10 million will be.

So if you know of someone that his rights are being violated persuade them to make a complaint, is the only peacful way to getting a change.

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Do we need tehcnological development or technological implementation?

How is Mexico supposed to improve if we still have technological deficits?

If you look at the image below you will see that in Mexico we are being charged 20USD$ per megabit per second While in Japan they are charged 0.27USD$ per megabit per second. So if we make a comparison in maximum internet speeds, we could say that in Mexico you could have a maximum speed at 40USD while in japan you could have maximum speed with 16.47USD. But in Mexico $40 is the price for 2mb/s while in Japan $16.47 is for 61 mb/s.

This technological atrocity can be translated into, Mexico is not advancing and Carlos Slim(The rich guy that makes Mexico poorer). Maybe technology is advancing with big leaps but still there are countries like ours that can not compete internationally in terms of technology.}

What is the solution? You tell me...

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European Union - Mexico

European Union – Mexico

Seen the history of the European Union since 2004 it had 15 countries joining it. It was the biggest market in the world. The total population was of 380 millions. And the GDP per capita was €24,000.

In may first of 2004 ten more countries joined the EU. And in the actuality 27 countries are joining it. It continues having the biggest market of the world with the 19% of the total market of the world. Now the EU has a free treat with business, services, capitals and people. All this allows to all the members travelling and easy interchange of products. All the members of this Union have to have political stability and the countries with the ones that have commercial treat too.

Considering that Mexico had been involved in international relation in all its history the European Union had evaluated that and its political stability. In September of 2000 a treat between the European Union and Mexico was signed.

As a result of this treat Mexico now has increase its international exportation and importation of products. Now days the 4% of al the exportation of Mexico are with the EU wile the 92% are with the members of the FTA. The 12% of the importations of products to Mexico is with the EU wile the 65% is with the FTA countries.

All this is important to Mexico because of all the benefits that it can have. Beginning with the possibility of Mexico to import a lot of products, without expensive taxes. And also because with all the exported products that Mexico gives to other countries augment the GDP.

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Latin America and the economical crisis

As a country bordering the US we know we depend on them, but we aren't the only ones. A great number of Latin American countries depends on trade with the United States. And for that matter we are, and will continue to be, completely affected economically by the crisis that is upon the USA.

Via the NAFTA, border with USA, and other agreements we are supposed to be the most affected. For our bad luck, decisions, position of the globe and other characteristics, we are expected to be in Mexico one of the lowest increased growth in the world over the next year this being with a 1.9% while all the other latin american countries are expected a 3%.

To help their economy boost up, a number of countries of Latin America have come together in the form of the Latin American Pacific Arc and are hoping to improve trade and investment with Asia. This is a great option as it opens a new pad for trading and help by getting an income from other than the United States.

But, besides of this measures taken by the LA countries other concerns arose in the Mercosur (south trading market) as they imply that a numerous group of countries don't make trading easy as they built up trading barriers against their neighbors as the crisis keep developing. Fear to worsen their situation or what could it be is my question? I think that in these concerns they should gather and form regional alliances and unify to make a more solid image so the other countries can feel more secure to trade with them. Let's hope that the greatest economical power country in these area which is Brazil doesn't feel so threaten by its neighbors.

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Successful Mexican Bussiness: Grupo Bimbo

• Grupo Bimbo was established in Mexico City in 1945, and is considered today as one of the most important bakeries in the world due to its production volume, sales and brand positioning.
• It owns more than 150 brands such as: Bimbo, Marinela, Milpa Real, Tía Rosa, Mrs. Baird's, Oroweat, Entenmann's, Thomas', Boboli, Barcel, Ricolino, Coronado, La Corona, Pastelerías El Globo, Suandy, among many others.
• It is present in Mexico, the US, Argentina, Brazil, Colombia, Costa Rica, Panama, Chile, El Salvador, Guatemala, Honduras, Nicaragua, Peru, Venezuela, Uruguay, Paraguay, the Czech Republic, and China.
• In 2008, Grupo Bimbo's net sales amounted $7.4 billion dollars.

The description of Grupo Bimbo in hoovers.com starts with "Do not take this Bimbo lightly." The company has proved to be successful one and also responsible with the community and the environment.

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México is not that bad.. =)

In think that México could be one of the richest countries because one of the richest man in the world is Mexican. The problems is that there is still a lot of poverty in the country. Here in México the riches are not well balanced.
We can say that Mexico is poorer than USA or Canada, but is a richer than El Salvador or maybe Haiti!!
Be proud of it=) We also have positive things for example: Mexico it´s a beautiful place to live, it´s food is deliciuos, we have beaches ;)

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